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This Quantum Computing Startup Just Raised $300 Million—On a Risky Bet

Martin HollowayPublished 5d ago3 min readBased on 4 sources
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This Quantum Computing Startup Just Raised $300 Million—On a Risky Bet

Oratomic, a quantum computing company founded by physicists from Caltech, has raised $300 million from major investors including Khosla Ventures, ARCH Venture Partners, and Spark Capital, along with support from Bezos Expeditions and Bain Capital, according to TechCrunch. The company claims it can build a working quantum computer using far fewer components than almost everyone in the field thought possible.

To understand why this matters, a bit of background: quantum computers need many tiny units called qubits to function. Scientists have believed you need hundreds of thousands, or even millions, of qubits to build a quantum computer powerful enough to do real work. Oratomic says it can do it with only 10,000 to 20,000 qubits — roughly 50 times fewer than expected.

Oratomic's method uses individual atoms trapped and moved by laser beams, arranging them as qubits. The company launched its work in March with an announcement of its research Oratomic, and partnered with another quantum firm, Monarch Quantum, in April Yahoo Finance.

The core claim is an advance in error correction — a major problem in quantum computing. Quantum computers are fragile machines; errors creep in constantly. The usual way to fix this requires many extra qubits. But Oratomic's founders say they have found a way to correct errors using far fewer extra qubits than the standard approach demands. CEO Dolev Bluvstein has said the team would not have started this company based on the old understanding of error correction. They only decided to build it after discovering their method could work with so few qubits. The company says it has already built and tested the pieces of its system, though not yet at full scale The Quantum Insider.

Oratomic wants to deliver its first fully working quantum computer by 2030. When it does, that machine should solve real problems better than today's classical computers can — something most quantum computers on the market today cannot yet do.

Here is what makes this risky: Oratomic is not planning to sell any of the halfway-working quantum computers that other companies are selling right now. IBM, Google, IonQ, and others all sell or plan to sell machines that are useful for some tasks but not yet completely reliable. This makes money now and helps build a community of developers. Oratomic is skipping that step entirely. If the company's claims about needing fewer qubits turn out to be wrong, there is no backup business plan.

The size and diversity of the investor group — including both deep-tech specialists and investment firms focused on climate and growth — suggests these are serious investors who have examined Oratomic's science carefully. Vinod Khosla called this his firm's "largest initial investment yet," which is notable given how many AI companies Khosla has funded TechCrunch.

But here is an important caveat: Oratomic's claim about needing fewer qubits has not been checked by independent scientists or third-party testers at the scale the company is aiming for. Big claims about error correction in quantum computing have been made before, and some have not held up when teams tried to scale them. Other companies are also using atoms as qubits — Atom Computing, Pasqal, and QuEra among them — so Oratomic's approach is not entirely new. What would be new is whether it actually works with so few qubits.

The real question will be whether Oratomic's laboratory demonstrations scale up cleanly to thousands of qubits. Most quantum computers have stumbled when moving from small test systems to larger ones, running into problems like noise and interference that the lab tests did not predict.